The purpose of the paper is to analyse the European labour market outcomes under the impact of various labour market policies. More specifically, the paper methodizes the main labour market policies and their role in reducing the level of unemployment. The most important aspects point out the necessary conditions complied by structural reforms in order to stimulate labour employment. The policies that frame a more efficient unemployment insurance system are essential to increase security, while encouraging the unemployed to look for a job and to accept a job offer. The analysis is based on a set of specific labour market indicators and on applying a regression model. We found that high employment rates are generally associated with large expenses on labour market policies. Also, an increased number of participants to programs developed with in these types of policies and a low degree of rigidity for specific labour market institutions are reflected in high employment rates. The degree of influence and strong dependence between outcome and policy labour market indicators are illustrated in various ways and discussed within the paper.